Export Factoring


Release the cash tied up in your outstanding export sales invoices with Export Factoring solutions.

Export factoring is a specialist facility offered by some invoice factoring companies to help finance exports and international sales. The process usually involves a third party finance organisation in the country in which you are doing business in order that payment can be collected as per the normal arrangement with invoice factoring facilities.

Help finance exports and international sales.

Not all invoice factoring companies have access to Export Factoring but Factoring Finance Ltd has an extensive and independent UK wide broker network including Export Factoring specialists.

Help mitigate foreign customs, laws, and language barriers

By having a third party finance organisation in the country in which you are doing business, difficulties that could be encountered because of different customs, laws, language and business practices are mitigated.

Despite the additional party involved and the international nature of Export Factoring, you should notice no difference in the service offered to you. Put simply, there is no significant difference between invoice discounting and invoice factoring offered locally or internationally. However, whilst up to 90% of invoices can be advanced as part of a UK Invoice Finance package such as invoice discounting or factoring, some invoice factoring companies may offer lower levels of advance for export invoices compared to local transactions.

Be Paid in Local or Pounds Sterling

Another factor to consider with Export Factoring is whether you want you to be paid in the local currency or pounds sterling. If you conduct regular business in the country concerned, it may be worth considering a local business bank account for local currency transactions. If large sums are concerned with your average invoice size, or you have significant volume, you should consider specialist advice on hedging against currency fluctuations.


Export Factoring Requirements

1) For EU based exports, turnover requirements are often less than for conventional UK based factoring and many factoring companies require only a turnover of £100,000 including some domestic sales to offer finance through export factoring

2) Factoring companies within the EU will often factor small debts from other EU companies without the need for a third party.

3) For exports going outside the EU, factoring companies usually require a higher level of sales to specific countries. For example sales of at least £500,000 will often be required within a given country.

4) As per normal UK based Factoring, you can expect better rates and fees the higher the volume of your sales become.

Export Factoring Features

1) As mentioned, you can be paid in local currency or domestic currency even if you invoice in sterling

2) You can choose to protect your payments against currency fluctuations

3) Although there are various forms of financing exports, the cost of export factoring is usually less than conventional export finance

4) You will usually pay more for export factoring than domestic invoice factoring to reflect the nature of the transaction and added costs in dealing internationally

5) Whereas in UK to UK sales, most invoice factors insist upon credit protection insurance for Export Factoring to reflect the added risks in dealing internationally